USD/MXN may rise 1669 - 2461 pips

Our pivot point stands at 18.5996.

Our preference

The upside prevails as long as 18.5996 is support.

Alternative scenario

The downside breakout of 18.5996 would call for 18.4666 and 18.3875.

Comment

The RSI is above 70. It could mean either that the pair is in a lasting uptrend or just overbought and therefore bound to correct (look for bearish divergence in this case). The MACD is positive and above its signal line. The configuration is positive. Moreover, the price is trading above both its 20 and 50 period moving average (respectively at 18.6381 and 18.6407). Finally, the USD/MXN has crossed above its upper Bollinger band (18.7068).

Supports and resistances

19.1301 **

19.0509 *

18.9716 **

18.8924

18.7255 last

18.6518

18.5996 **

18.4666 *

18.3875 **

Number of asterisks represents the strength of support and resistance levels.